The Detroit auto maker got a $50 billion bailout from the U.S. in June 2009, in exchange for a 61% equity stake, taking with it $45 billion in tax-loss carryforwards, which could be used against any future earnings. But when the U.S. Treasury, which oversees the Internal Revenue Service, cut its GM stake to 26% in GM's November 2010 IPO, the change in control triggered a rule that would have eliminated the carryforwards. Treasury's solution? Declare that the law didn't apply to it.

Now that GM has been profitable for 11 straight quarters, perhaps Buffett, who raised his stake in GM by 50% in the third quarter, can put his head together with Treasury and, as investors, prevail upon GM to ante up to the federal kitty.

Berkshire Hathaway BRKA -0.4813844372676863%Berkshire Hathaway Inc. Cl BU.S.: NYSEUSD163.32
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Chairman and CEO Buffett didn't respond to requests for comment. Treasury pointed to a March blog post by a tax official who defended the action by saying that it was taken during the financial crisis, and, since the law was made to keep corporate raiders from buying carryforward-rich companies to evade taxes, it "made no sense" to apply it to Treasury, which doesn't pay taxes. The blog didn't address GM's renewed profitability. GM said it has "always complied" with all tax laws and will continue to. All this could be moot if the judge who approved the bailout reopens it Thursday.

Last Week: Review

Mixed Bag on Jobs

U.S. nonfarm payrolls rose by a seasonally adjusted 146,000 in November, much better than the 80,000 that had been forecast by economists. A separate survey of households showed the jobless rate fell two-tenths of a percentage point, to 7.7%, the lowest level since December 2008. The Labor Department said Hurricane Sandy didn't "substantively" affect national employment estimates for November. But payrolls were revised sharply lower in October and September, with October rising 138,000, versus an initially reported 171,000, and September's tally cut by 16,000.

Bank's Behavior Questioned

The SEC is probing charges by three former employees of
Deutsche BankDBK.XE -3.597689075630252%Deutsche Bank AGU.S.: NYSEUSD18.355
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that the bank failed to recognized as much as $12 billion of losses during the financial crisis, helping it avoid a government bailout, the Financial Times said, citing complaints. Deutsche Bank said the allegations by the former employees were "wholly unfounded" and that its "valuations and financial reporting were proper." Deutsche Bank, Europe's largest bank by assets, survived the financial crisis without state aid. It said it's cooperating with the probe.